DAX Index Price Forecast February 16, 2018, Technical Analysis

The German index went back and forth during the trading session on Thursday, as we continue to bounce around near the €12,300 region. I think that the €12,000 level underneath is essentially the “floor” in the market, and I think that it’s only a matter of time before the buyers jump in on these dips. The €12,750 level above is resistance, but I think it will get broken to the upside and DAX traders will not only continue to push higher, but I think they will be adding to their overall positions as the market has been bullish for quite some time. Recently, we have given back a lot of the gains though, but in the big scheme of things that should offer value.

I believe that the market should continue to be noisy, but I think this is a bit of a “basing pattern”, suggesting that we are trying to build up the necessary momentum to finally go higher. This is a confidence building exercise, so obviously it will take some time. However, if we were to break down below the €12,000 level, that would be an extraordinarily negative sign and could send this market much lower. At that point, I would anticipate a further deterioration of conditions to the €10,000 level. I would not only expect to see it here in the DAX, but I would also anticipate seeing it in other stock markets around the world if it were to happen.

DAX Video 16.02.18